D.C. Council Chairman Phil Mendelson wants to do away with the city's gas tax.
According to The Washington Post, Mendelson wants to replace the 23.5 cent tax with an 8.3 percent tax on wholesale gas and diesel. Mendelson (D) cites the fuel efficiency of newer model vehicles as the reason why the wholesale tax is needed.
“When you go out and buy a Ford Focus, your gas mileage is better than it was with your old Range Rover, so you buy less gas,” Mendelson told The Post. “This removes the volatility from our gas tax.”
But the proposal doesn't mean a drop in prices at the pump. With gas distributors likely passing on the added cost, customers probably won't notice a change.
Mendelson says his plan, which was inserted into Mayor Vincent C. Gray’s 2014 budget proposal, will help the city gauge how much money it will make from fuel.
